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POLICY REVIEW

                               URBAN INDIA’S MUCH NEEDED RENTAL


                                                                                HOUSING PUSH







           DR. DEBARPITA ROY                Alarmingly, share of rental housing is   the below poverty line households,
                                            low among the urban low income and
                                                                               provisioning of  schools  and skilling
           MR. MANIKANDAN KP                poor households, although the need for   centres as a part of the complexes and
                                            rental housing is the greatest among   the location of these complexes. In case
                                            them. This prevailing sad state of rental   of MTA, the article highlights a few of
                                            housing situation  came  into spotlight   immediate changes and a few long-term
            Rental housing will play        following  the nationwide lockdown   ones, to improve MTA’s efficacy.
                                            imposed in March this year. COVID-19
            an instrumental role in         brought about unprecedented  health   INTRODUCTION
            addressing urban India’s        and economic  crisis and re-focussed
            housing gaps. Effective         attention on the gaps in access to   Rental housing is the most
            mplementation of                secure and  adequate housing faced  by   affordable form of housing for
            ARHC and MTA,                   India’s urban poor and migrants. To   households,  particularly low-
                                                                               income  ones. But insufficient
            keeping the interest            address this  the Union  Government   availability  of affordable and
            of urban low-income             launched   the  Affordable  Rental  secure rental housing is a major
                                            Housing Complexes (AHRCs) scheme.
            households in mind, is          ARHC is one of the  two most recent   issue plaguing urban India.
            the much needed next            and much needed rental market policy   Further, housing  policy  till
            step.                           interventions. The  other being the   recently has been largely geared
                                            Model Tenancy  Act (MTA) put forth   towards  promoting  housing
                                            in July 2019. This article discusses   ownership.  Supported    by
                                            both initiatives  and certain aspects of   economic growth this resulted in
                                            each which require further attention for   a steady decline in proportion of
                                            greater effectiveness. In case of AHRCs
                                            special  attention needs to be paid  to   rental housing (Graph 1).
                                                               Graph 1: Urban rental housing in India

                                                    100                                              40%
                                                  Number of Houses (in Million)  70                  25%   Rental  housing
                                                     90
                                                                                                     35%
                                                     80
                                                                                                     30%
                                                     60
                                                     50
                                                                                                     20%
          Key Words: Rental  Housing,  ARHC,         40                                              15%
          Affordability, Model Tenancy Act.          30                                              10%
                                                     20
                                                                                                     5%
          Dr. Debarpita Roy (droy@icrier.res.in)     10 0                                            0%
          is  Fellow,  Indian  Council  for  Research         1991          2001          2011
          on International  Economic  Relations       Owned      Rented     Others     Percentage of owned houses
          (ICRIER). Mr. Manikandan KP (mani@                                        Source: Census 1991, 2001 and 2011
          ihf.in)  is Institution Builder, Indian   1 Views are personal. The authors thank Meera ML of ICRIER and Simran Pal Kaur of IHF for their
          Housing Federation (IHF).          research assistance. Debarpita Roy’s contribution to this article has been made possible by the support   53 53
                                             extended to ICRIER by the Ford Foundation for research and dissemination on challenges to affordable
                                             housing in urban areas of India.
                                                                        October 2020 Volume 21 No. 2-SHELTER  53
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